Seagate Technology (NASDAQ: STX) shares surged more than 7 percent in pre-market trading after the firm reported impressive third-quarter results along with an optimistic forecast, illustrating strong momentum in the data storage sector.

During the quarter, Seagate earned adjusted earnings of $1.90 per share, outperforming analyst expectations of $1.73. The revenue reached $2.16 billion, topping the consensus of $2.12 billion and marking a substantial 30.5 percent year-over-year increase.

This growth can be attributed to steady demand for mass capacity storage solutions coupled with enhancements to the company’s operational efficiency. Seagate’s gross margin improved to 36.2 percent, a significant rise from 26.1 percent recorded a year earlier, showcasing better efficiency and greater pricing power.

Looking ahead, Seagate provided an encouraging outlook for the fourth quarter, projecting an adjusted EPS between $2.20 and $2.60, which is well above the $2.05 analyst estimate. Revenue guidance is set between $2.25 billion and $2.55 billion, with the midpoint of $2.40 billion exceeding Street expectations of $2.28 billion.