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The Young and the Restless recap for January 8, 2026, featured Jack and Kyle finally getting the upper hand against Victor, using Matt Clark to do so. Billy and Sally discussed hard truths, and just when it seemed like he was on the right path, a conversation between Cane and Phyllis may tempt him back to the dark side.
What happened on The Young and the Restless
At the Abbott Mansion, Diane was worried about how long Jack had been gone. She wanted information about his whereabouts, and after joking a bit, he revealed that he had found a way to prove Victor had the program. However, the source was less than ideal: Cane.
Jack explained how furious Lily was when he ran into both at the GCAC. Seeing the state that Cane was in, Jack offered him a chance to seek revenge against Victor for destroying his company. The irony of the man who created the AI program being responsible for stopping it wasn't lost on Diane.
Cane regretted the creation of the AI software, and Jack believed that Cane's ego took a hit. Diane asked if Cane agreed to help them because they needed proof that Victor had the program. Without concrete evidence that he possessed it, legally speaking, their hands were tied.
Kyle arrived home with a wide grin, proclaiming, "We now have our countermove. Our ultimate bargaining chip." His confidence immediately grabbed his parents' attention. Kyle had their security team follow all of Newman's activity, and it finally paid off.
Kyle uncovered that someone from Nick and Sharon's past resurfaced to torment their family. Diane questioned how any of that could be the answer to stopping Newman's onslaught against them. Kyle told her to "wait and see." He explained how Nick and the man were in a car accident, and while Nick was hospitalized, the man from Los Angeles made it out relatively unscathed.
Jack and Diane's jaws dropped as Kyle had the security team drag Matt Clark into their living room. Jack instantly recognized him, and of course, Matt called himself Mitch, but Jack wasn't buying any of it. He picked up the phone and called his greatest rival to say, "Victor, I have Matt Clark here. Perhaps it's time we make a deal."
Billy returned home, and Sally thanked him for showcasing legitimate change. Billy brought up their vow of transparency, and he questioned if things were good between them. He asked if she waited for him to screw up again, admitting how much his life spirals when he goes off the rails.
Sally admitted that she feared their life together falling to pieces if he slipped back into old habits. Billy confessed that he overheard Sally's conversation with Victoria on Christmas, and Sally apologized for not coming to him directly. Billy wasn't offended because he, too, was afraid of letting his worst impulses overtake him.
Billy was determined to prove himself to Sally, and he knew that it wouldn't be an overnight process. Sally wanted to support him, but she didn't want to apply too much pressure to him. He realized just how concerned she was, and he stressed how much he wanted to support and adore her.
Sally wished that she would have had this conversation a lot sooner. Regardless, Billy knew the importance of talking about these things. He wanted to keep Sally happy, which meant getting out of each other's way.
Sally was so relieved to have the conversation because she was scared about the fragility of her heart. After Adam and Chelsea cheated on them, it took a lot to repair the damage that they had done. She was terrified to shatter the very thing that she worked so hard to put back together. Sally hoped that Billy's words would translate into actions, and he urged her to keep applying the pressure.
After their conversation, Billy and Sally took things to the bedroom where they channeled their emotions into passionate lovemaking.
Phyllis encountered Cane at the GCAC, and she commented that he gave off Cane Ashby energy instead of Aristotle Dumas. She wanted Cane to embrace the Aristotle persona and lead himself into the future, with her by his side. Cane asked Phyllis to stay away from all parts of him - for good.
Phyllis requested Cane to treat her more respectfully and stop with the personal jabs. Despite not being a saint herself, she was one of the few people in Genoa City willing to speak to him. Unlike everyone else, she appreciated the part of him that leaned into the Aristotle character. Phyllis didn't think Lily would ever understand the duality of Cane's personality.
Cane didn't want to hear Phyllis out and asked to be left alone. Before she left, she prodded him for an update on her offer to use the AI program to steal Newman from Victor. Cane insisted that he was not Dumas, and corporate takeovers did not interest him. Phyllis asked what had changed from the last time they crossed paths.
Instead of actually leaving, Phyllis sat down at Cane's table and interrupted his meal. She refused to be chased off by him. Cane didn't want to partake in anything Phyllis wanted, but she vowed to be there for him anytime that he needed her. Cane just wanted some time alone, and she wouldn't take the hint.
Phyllis wanted to know what happened with Lily, and he walked her through the kiss. However, as they were on the verge of reuniting, Lily chose to leave town, slammed the door to reconciliation in his face. Phyllis reminded him that Lily would always behave like this. She would always judge him for being who he truly was.
Cane recalled the many times that Lily forgave his mistakes and took him back, similar to the numerous chances he gave Phyllis. Cane wanted a semblance of peace while he worked through Lily's exit. Phyllis thought that Cane had romanized his past with Lily, and the image in his head no longer existed.
Cane received a text from his daughter, who demanded that he leave her and Charlie alone. She told Cane that they planned to sever all ties with their father. His efforts to reconnect with his children had officially reached a disappointing conclusion.
Cane told Phyllis that Jack was there, and he wanted to team up with Cane as well to force Victor's hand. Phyllis wondered why Cane would consider partnering with Jack instead of her. Billy and Sally arrived at the GCAC did the conversation, and Billy, against his better judgment, zeroed in on the two.
Billy asked Sally to head downstairs while he explained to Phyllis that the deal with his family was off the table. He promised Sally that there was nothing else to it. However, Billy heard everything and took off.
Holden approached Audra outside of Crimson Lights, and she asked how long until Claire ran to the police with information about their Los Angeles past. He hadn't confessed everything to Claire yet, so for now, she had nothing to worry about. Audra latched onto the idea of the word "yet," but Holden asked her to calm down.
If Holden spilled everything to Claire, both of their lives would burn to ash. Someone died at Holden's hand. It may have been an accident, but Audra didn't think a jury would buy that. The cover-up in this case was just as bad as the crime, and Holden dumped the body into an unmarked grave.
Audra stated that Holden was one of the few good guys from her time in Los Angeles. She could tell just by watching him from a distance that he was a genuine person. Holden treated everyone with respect back then, but he didn't exhibit that in the present.
Audra needed to pretend like their previous connection didn't exist, which is why she distanced herself from him when he arrived in Genoa City. However, Holden was the only person in town who truly knew Audra at her core. She recognized that she put up the walls that shut him out, but she needed to know why their friendship crumbled.
Holden now understood Audra's icy demeanor toward him, so he could proceed accordingly. Before she finally opened up to him, Holden was offended by her attitude and didn't know why she avoided him. After that, her aggression toward Claire became more off-putting. Holden wanted Audra to stop throwing Claire's past in her face when she, too, had something to hide.
Audra asked if Claire mattered so much more to him than she did. Holden believed that Audra was starting to show flashes of her previous self. He didn't want to fight her anymore. They were friends in the past, and he hoped they'd always have each other's backs.
Audra and Holden reflected on the night the man was killed and how they helped each other through the chaos. Audra had apologized for being so frantic, but Holden gave her instructions to get herself an alibi, so she couldn't be placed at the scene of the crime. Audra felt as if Holden saved her, but he told her then, it would be the last time he would come to her rescue.
That night, and the man's death, tied them together for the rest of their lives. Audra and Holden would never be free of each other. Nothing could ever change that. Holden believed that Claire would prevent him from facing consequences for it.
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Audra kept looking for trouble with Claire. He needed Audra to finally agree to back off Claire and to stop provoking her. She agreed to leave Claire alone, and in exchange, Holden would keep the details of their past to himself.
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