The Young and the Restless Recap Jan 7: Adam threatens Michael, Cane sees Lily after their kiss

In the Young and the Restless recap for Wednesday, January 7, 2026, Lily makes a decision about her future with Cane, Jack has a new idea, Adam threatens Michael, and Nikki finds an ally.

The Young and the Restless Recap

At the main house at the ranch, Michael was in the living room, thinking about when he accepted the Roman coin from Victor, thereby buying his loyalty. Adam came in and took Victor’s patriarchal seat in the armchair.

Adam told Michael that Victor would be gone a while and updated him with the Matt Clark situation, and Nick’s crash. He said he was handling things in Victor’s absence, and Michael noted how the family trusted him to do so now.

Although Michael wanted to wait for Victor’s return to discuss business, Adam said he knew Michael wanted to talk to Victor about the AI program. Adam reminded Michael that he was there when he had to suck up his guilt and betray Jack on Victor’s orders.

Adam told Michael that they had to choose sides. He proved whose side he was on, and now needed to know where Michael’s loyalties were. Michael showed Adam the coin and said that Victor gave it to him as as sign of his loyalty.

Adam told Michael that he knew how much he had done for the Newman family and wasn’t discounting it. However, he said that he knew Victor had a soft spot for Michael, but he did not. “If you betray him, I will crush you,” Adam warned.

Nikki interrupted as things got heated. When Adam left for the office, Michael tried to downplay their argument to Nikki. She guessed that Michael was ordered to go after the Abbotts, and that was why he was there.

Nikki told Michael how she threatened to walk out over the program but in the end she couldn’t follow through. Michael said it sounded like they both wanted to save Victor from himself without alienating him. 

Nikki realized that she and Michael were on the same page and wondered if Michael had any ideas of what they could do to stop Victor from using the AI program.

Michael said that they could try to get the app back and to cover themselves, they could put the blame on the person who started the whole mess: Cane.

At the Abbott mansion, Diane bickered with Jack that relying on Nikki to deal with Victor was a bad idea. She even thought Phyllis was a better option at that point. Diane noted that Victor sometimes listens to Michael, but he didn’t seem like a viable option, either.

Jack said that it all came down to a fight between him and Victor, and it was time that he grabbed the bull by the horns and went after him himself.

Kyle was interrupted by coming home and said that Billy wanted to run a story implying Victor broke the law going after Arabesque. Jack wondered what the legal implications were, but Kyle said Victor didn’t consider that when he came after them, and thought they should give him a dose of his own medicine.

Jack assured them that he had a plan and wanted to get on it, and said they needed proof of a crime before publicly accusing Victor of anything.

Cane tracked down Lily at the GCAC dining room and gave her a single rose. He said he hadn’t stopped thinking about her since she came to see him on New Year’s Eve and was glad they finally had that talk. Lily said she was confused; Cane said things that night that reminded her how much she used to love him. 

Cane said the feelings were real, but Lily said she let her defenses down and was buying into the things he said, even though she knew he was capable of doing and saying anything to convince her they belonged together.

Cane insisted they did belong together. He said the kiss they had shared was real for both of them but Lily called it just a moment of weakness and said that the kiss meant nothing to her.

“I don’t believe you,” Cane told her. He asked her to go out for drinks and have some laughs together. Lily said she was leaving town for a while to see Mattie, clear her head — and get away from Cane. 

Cane promised to give Lily space if she didn’t leave, but she said no. Lily told Cane that she knew what she wanted, but Cane said the kiss told him otherwise. He loved the idea of her visiting Mattie, but didn’t think she was handling her emotions the right way.

Cane suggested that he go with her, and after he apologized to Mattie, they could go see Charlie together, and the four of them could be together. Lily snapped at him to stop.

Lily told Cane that he should be with Phyllis or be alone. All she knew was that he wouldn’t be with her. Lily firmly told Cane to leave her alone and left.

Once alone, Jack approached Cane. He told him he needed proof that Victor had the AI program and was willing to pay a hefty price for it. Cane was upset about Lily and sounded like he was throwing in the towel about Victor.

Jack said that he knew better than anyone that Victor couldn’t win all the time. He asked Cane if there was evidence that Victor illegally obtained the program. Cane said it wouldn’t be easy but he could probably find something.

Lily went to Crimson Lights and called Devon. She asked to meet him and Natee to go over a few things before she left town. When she hung up, Lily recalled how she and Cane kissed, and the intense conversation they’d had leading up to it.