Target just dropped Q3 earnings and it's giving mixed vibes. Bottom line: $689M profit is down YoY, but here's the plot twist—they beat analyst expectations on EPS ($1.78 vs $1.71 forecast). Revenue took a hit though: $25.27B vs $25.67B last year, a 1.6% dip.

The real story? Target is playing defense. They just slashed full-year guidance from $8-10 to $7-8 per share (adjusted). That's a significant haircut. Wall Street was expecting $7.27 anyway, so the company's essentially signaling "we're bracing for rough waters."

Stock reaction: TGT dropped 3% in pre-market trading to $85.86. When you beat earnings but tank guidance, that's what happens—investors hate the forecast more than they love the beat. Classic retail sector squeeze play happening right now.