On the January 14, 2026, episode of The Young and the Restless, Tessa informed Sharon about her divorce, Nick left the hospital earlier than expected, the Newmans attempted damage control, and Cane and Phyllis declined to return Victor's company to him.
What happened on The Young and the Restless

Cane and Phyllis smiled in Victor's face as he confronted them over the attack on Newman. Cane feigned ignorance, but Victor asked him to "cut the crap." Victor was certain they were the ones destroying Newman from the inside out.
Victor questioned Cane and Phyllis about which one of them created the software's ability to attack its host. Phyllis had finished biding her time, and relished in the idea of telling Victor to his face that someone had finally beaten him at his own game. She said, "Newman Enterprises is ours, and there's not anything you or anyone else can do about it."
Phyllis reflected on her complicated history with Victor, blaming herself for believing that he would follow through. She loved that Victor was there, groveling before her, after years of belittling her.
Victor offered to return Cane's company to him, but Cane wasn't interested in a payout. Cane stood by Phyllis, telling Victor that there was nothing he could do about this hostile takeover of Newman Enterprises.
Victor accused Cane of stealing his fortune, but Cane blasted him for spreading lies about Colin. Victor demanded they hand over his company, and neither opponent was willing to give an inch. Cane offered to sell his dishevelled company to Victor, remarking that he could try and build up Arabesque in the same way that he had.
Victor refused the offer and turned his attention to Phyllis. He brought up Summer, something Phyllis did earlier in the confrontation. Victor looked forward to the day that Summer told Phyllis how much she loathed her for what she did to her father's family, the Newman family.
Cane and Phyllis went to Society to celebrate after their run-in with Victor. He asked her if she regretted their actions because of Victor's warning about Summer. However, Phyllis felt great about finally winning a battle against him. She asked why Cane was so determined to ruin the moment by bringing up how Summer and Nick might feel about her actions.

With Sienna in bed, Sharon and Noah had a chance to talk with nobody else around. Sharon was surprised that Noah didn't join Sienna, as she saw through his calm demeanor. Noah was filled with rage, but also fear. Matt being on the loose made him incredibly nervous.
Sharon reminded Noah that Sienna was safely tucked into bed upstairs. Still, Noah worried that Matt could strike again at any moment, unaware that the Abbotts had the monster in custody. Sharon understood how Noah felt because she's lived in the same cloud of fear.
Sharon tried to comfort Noah, but neither of them had direct knowledge of Matt's condition. Tessa knocked at the door, happy to finally be face-to-face with Sharon. She asked how Sienna was doing, which instantly prompted Sharon to question how Tessa could possibly know Sienna.
Tessa explained how they went all the way back to her dive bar days, and Tessa hoped that Matt would be captured soon, so everyone would be safe. Noah gave the ladies some privacy, and Sharon apologized for not giving much attention to her and Aria.
Sharon realized that Tessa was there for an important reason because it was so late. She wanted to fill Sharon in on the latest about what was going down with Mariah. Tessa hadn't heard from her wife since Mariah left the Boston clinic, asking for space from everyone.
Mariah hadn't returned any of Sharon's calls, and the only texts she had received were short and to the point, with no personality in them. Tessa tried to give Mariah the space she requested, but she didn't think it was ever going to get better.
Sharon wondered if things would have gone differently if she had been honest with Mariah about Noah's accident and Matt's resurrection. She hoped Mariah didn't feel shut out by her, but Tessa asked her not to blame herself. Every attempt to get through to Mariah was met with resistance and apathy.
Tessa had been tracking Mariah on the family tracking app, but she headed south instead of returning to Genoa City. Tessa had spent months looking at her phone, hoping for a crumb of communication from her wife. Yet, nothing ever came.
Tessa couldn't do it anymore. Enough was enough. Sharon asked Tessa what she meant by that, and she dropped the bombshell that she was filing for divorce. Although this wasn't what Tessa wanted, she didn't know what else to do.
Tessa broke down, and Sharon apologized profusely for questioning her decision. Tessa was hurt and frustrated by the ongoing distance between her and Mariah. Sharon knew how deep the love between Tessa and Mariah was, but it was over. The end of their love story had arrived.

At the hospital, Adam dropped by to visit Nick. Adam recognized that his brother was in unimaginable pain, but he had several items to bring to Nick's attention. Adam confirmed that Matt was captured by Jack and Kyle. They wanted to use Matt as a bargaining chip to get Victor to back off with the AI program.
Nick hoped that Victor had agreed to the deal, but everything went south with their family company before he could. Newman Enterprises was under attack, and they were rapidly losing the empire they had spent decades building.
Nick asked Adam to back up and explain how they got Matt to begin with. He was surprised that the Abbotts had the Newman family followed, and wondered why they'd go to such great lengths. Nick assumed Matt was behind bars, but Adam explained that it was so much more complicated than that.
Adam went on about how Cane's program attacked Newman, and Victor narrowed down the suspect list to two names: Cane and Phyllis. Nick had warned Phyllis to stay out of Cane's conflict with Victor, but she refused to listen. Now she was directly in Victor's warpath, which is not an enviable position for anyone.
Nick felt powerless from the hospital room. He wanted to get back out into the world and save his family from attack. Adam urged him to take a backseat and let everyone else figure this out. Nick was focused on Jack keeping Matt prisoner, and he hoped that Victor would send his team after the madman.
Nick reminded Adam of how clever Matt was and how easily he had escaped before. This wasn't a risk that Nick was willing to take. He needed confirmation that Matt was tucked safely behind bars. Nick refused to sit tight at the hospital, and he started to leave, and Adam pleaded with him to reconsider.
Nick threw on a hoodie and asked Adam to either help him or stay out of his way.

At the Newman ranch, Victoria revealed to Nikki that the press had caught wind of their countermeasures against the AI program. Nikki blamed Victor for this happening. Cane had been neutralized, but Victor couldn't see past his vendetta against Jack, and this was the price.
Nikki didn't want to believe that their company was finished. However, it didn't look good for Newman. Victoria tried to reassure her mother and defend Victor's ability to convince Cane and Phyllis to back off. Nikki thought that everyone in Genoa City had underestimated Cane, and as a result, they were in this vulnerable position.
Nikki told Victoria, "It's possible that the great Victor Newman has finally met his match." Claire visited the ranch and was stunned that Newman was under attack. Nikki wasn't confident that Newman Enterprises could survive the onslaught.
Claire was upset because Victor denied having the program when she previously asked. Jabot was still in the clear, but their family company was not. Claire found it difficult to believe that Phyllis would put Summer's other family in jeopardy by turning the program on Newman. She saw an opportunity to strike and wasn't going to waste a moment.
Victor returned home, looking somewhat defeated. He was pleasantly pleased to see Claire, but he had business to discuss with the family. Victor confirmed that Phyllis and Cane were behind the attack on Newman, and the IT department gave the news that their assets were being transferred.
Victor refused to sugarcoat the severity of the situation. Newman was in a great deal of trouble, and to survive, they needed to sell pieces of their company before everything was gone for good.
Nikki berated Victor for putting their family in this position. In classic Victor fashion, he refused to see any fault on his end, and Victoria asked her parents to cease the fighting. Adam and Nick returned to the ranch, and everyone was stunned that Nick had left the hospital.
Nick wasn't the type to sit on the sidelines while his family did all the heavy lifting. He believed that he was the only person who stood a chance to get through to Phyllis, so he needed to find an opening and speak to her. Nick was the best chance that the Newmans had at reclaiming their company.
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