IBM Results Presentation Deck

Non-GAAP supplemental materials Reconciliation of continuing operations - 3Q 2022 Gross profit Gross profit margin SG&A Other (income) & expense Total expense Pre-tax income Pre-tax income margin Tax rate Net income Net income margin Earnings per share** GAAP adjustments $7,430 52.7% 4,391 Acquisition- related 5,755 11,931 (4,501) (31.9%) 28.6% (3,214) (22.8%) ($3.55) $165 1.2 pts (253) (1) (253) 418 3.0 pts (0.8 pts) 315 2.2 pts $0.35 3022 Retirement- related adjustments* (6,062) (6,062) 6,062 43.0 pts (12.1 pts) 4,566 32.4 pts $5.05 Kyndryl- impacts related impact Tax reform 0.0 pts 0.0 pts $0.00 (0) 14 14 (14) (0.1 pts) 0.2 pts (14) (0.1 pts) -$0.02 Operating (non-GAAP) $7,595 53.8% 4,138 (293) 5,630 1,965 13.9% 15.9% 1,653 11.7% $1.81 $ in millions (except EPS which is in whole dollars) *Includes a one-time non-cash pre-tax pension settlement charge of $5.9 billion ($4.4 billion net of tax) **Operating (non-GAAP) EPS was calculated using 912.8 million shares, which includes 8.8 million dilutive potential shares under our stock-based compensation plans and contingently issuable shares. Due to the GAAP net loss for the three months ended September 30, 2022, these dilutive potential shares were excluded from the GAAP loss per share calculation as the effect would have been antidilutive. The difference in share count resulted in an additional ($0.02) reconciling item. The above reconciles the non-GAAP financial information contained in the "Financial highlights", "Revenue and P&L highlights", "Expense summary" and "Prepared remarks" discussions in the company's earnings presentation. See Exhibit 99.2 included in the company's Form 8-K dated October 19, 2022, for additional information on the use of these Non-GAAP financial measures. 28

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