Annualised revenue growth over the last 5 years. Revenue today $20B vs. $10B five years ago = 14.9% CAGR.
Why it's the leading indicator
Revenue is "real" - it's either there or it's not. Earnings can be massaged with cost cuts, accounting choices, and one-off gains. Cash flow can be flattered by under-investing. Revenue growth is the cleanest read on whether more customers are buying more product, period.
What "good" looks like
20%+: high-growth - usually tech or consumer breakouts
10–20%: strong, healthy compounding
5–10%: market-average
0–5%: mature business, look at margin expansion and capital returns instead
Negative: structural decline - usually a no-go unless very deeply discounted
Quality of growth matters
Growth bought via acquisition, share issuance, or unsustainable promotions is worth less than organic growth. Read the 10-K for "organic revenue growth" disclosures and compare to the headline number - the gap tells you how much is real.