Caterpillar Inc. (NYSE: CAT) shares fell 9.25%, or $65.99 per share, on October 29, 2026, closing at $647.39, after the Company reported financial results for the third quarter ended September 30, 2026. In that report, Caterpillar disclosed inventories of $22.2 billion, representing a 22% increase compared with the prior year. The Company also disclosed $460 million in manufacturing costs across its construction industries and resource industries businesses, which it attributed to higher freight charges, higher material costs, and tariffs. Operating profits reported for the quarter included $128 million of tariff recoveries, an item that may not recur in future periods and that bears on whether the reported level of profitability can be sustained. The combination of rising inventory levels, elevated input and freight costs, tariff-related expenses, and profits supported in part by tariff recoveries was disclosed to the market on October 29, 2026, and the share price declined the same day. The investigation concerns whether Caterpillar adequately disclosed its inventory build, its manufacturing cost exposure from freight, materials and tariffs, and the contribution of tariff recoveries to reported operating profits ahead of the October 29, 2026 third quarter results.