PeopleSoft (PSFT) was up 7.5% a day after it beat Street expectations for the second quarter, with earnings of 14 cents a share and a 51% jump in license revenue to $166.3 million. This morning, Salomon Smith Barney responded to the strong performance by upgrading the stock to buy from outperform.

The software maker said its third-quarter earnings would be 15 cents a share on license revenue of $165 million to $170 million. The company also said it was comfortable with the fourth-quarter consensus EPS estimate of 19 cents.

Other software stocks were rising as well, notably

Peregrine Systems

(PRGN)

, up 14.5%.

After the close Tuesday, Peregrine posted a first-quarter earnings of 12 cents a share, in line with Street estimates, and up from 10 cents in the year-earlier period. The server and mainframe software applications maker said despite a weakened economic climate, it experience strong growth for its products in the quarter.

Revenue also beat expectations, rising 82% over the same period last year to $94.32 million.

The company also reaffirmed growth projections for 2002 earnings of between 25% and 30%, on revenue up 30% to 40%.

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Other software stocks up this morning included

Microsoft

(MSFT) - Get Microsoft Corporation (MSFT) Report

, up 0.8%,

Oracle

(ORCL) - Get Oracle Corporation Report

, up 2.7%, and

Siebel

( SEBL) up 4.3%.