Days of our Lives Recap, August 26, 2025: Steve tells Stephanie he knows about Philip's fraud

Here’s your Days of our Lives recap for Tuesday, August 26, 2025, when Stephanie’s advice upset Xander, Steve learned the truth about Philip, and Philip woke up in bed with Gabi.

What happened on Days of our Lives

In the square, Paulina read a passage in “One Stormy Night” at a pop-up book sale. “You seem to be enjoying that book,” Abe noted. Paulina chuckled nervously, and she admitted the book was steamy. Abe suggested they grab breakfast, but Paulina noted that she needed to meet up with Jada first.

Stephanie met with Xander at Titan to discuss plans to deal with any fallout from the public learning about Philip’s fraud. Stephanie explained that she would work to keep Philip’s secret under wraps, but that they needed to address the root problem. As Philip was not legally co-CEO at the time of the merger, Stephanie argued that Xander needed to formally name Philip as co-CEO in a legal agreement to undercut the argument against the legality of the takeover.

“Something that makes Victor’s wishes immaterial,” Stephanie said. Xander asked Stephanie if she was suggesting that he should reward Philip’s fraud with the same legal claim to the company as him. “This is exactly what I figured you wouldn’t like,” Stephanie muttered. Xander noted that even if he made Philip a legitimate heir, it did not prevent the court from unraveling the takeover.

“I realize that. But like I said, maybe it would help bolster your defense of the takeover,” Stephanie advised. Stephanie argued that it would help the shareholders stay calm if they believed there was no unrest with the executives. “It doesn’t guarantee that the deal won’t still get nullified somehow. And in that case, I would lose half of everything. It’s just not worth the risk,” Xander argued.

Stephanie told Xander that if he did have a part in Philip’s beating, Philip would have nothing to lose if he did not have half the company to fall back on. “In which case, Xander, you’d end up losing everything,” Stephanie said.

When Alex arrived, Stephanie was gone. Xander told Alex about his meeting with Stephanie. “I think it sounds like it might be worth a shot,” Alex said. When Xander argued that it had been a waste of time to hire Stephanie, Alex reminded him that he had forced Alex to convince Stephanie to take the job. Alex warned Xander not to insult Stephanie any more.

At Black Patch, Steve thanked Paul on the phone for his help. After Steven ended the call, he smirked. “Philip, you are a bad, bad boy,” Steve said. Steve texted Stephanie, and he asked her to meet him at his office. When Stephanie arrived, Steve told her that he knew that Philip had no legitimate claim to his inheritance or his job. “But you already knew that, didn’t you?” Steve asked. Stephanie said yes. Steve explained that he had reviewed the documents from the court case, and he had asked Paul to examine Victor’s letter. The ink used had been produced after Victor’s death.

“Impressive detective work,” Stephanie said. Stephanie filled in the blanks for Steve with all she knew. “I’m surprised the truth hasn’t come out already,” Steve said. “That’s because there’s a lot on the line,” Stephanie said. Stephanie explained that the truth could unravel the takeover. “And that’s why Xander kept a lid on it,” Steve said. Stephanie said yes, and she asked Steve to keep quiet too. When Steve groaned, Stephanie asked if he cared whether the DiMera family retook their company.

“No I don’t,” Steve admitted. “Then maybe just let this one go,” Stephanie countered. Stephanie asked Steve to keep the secret as a favor to her. Reluctantly, Steve agreed. “If it’s a choice between some client and my daughter, I choose you every time,” Steve said. Steve added that in his experience, secrets did not stay buried. “You might want to prepare your boyfriend for the inevitable,” Steve suggested.

When Stephanie returned home, Alex was working in her living room. “I guess we just missed each other at the office today,” Alex said. Stephanie noted that Xander did not like her plan, but Alex told Stephanie that he believed Xander would realize it was good advice.

“As it turns out, I don’t think he has to worry about people finding out about Philip,” Stephanie said. Stephanie explained that she had discovered who had been investigating Titan, and they had agreed to drop their investigation. Alex peppered Stephanie with questions. Stephanie told Alex that she could not talk about it. Stephanie asked Alex to trust her.

Philip woke up in bed next to Gabi at the Salem Inn. “When I agreed to lunch yesterday, I didn’t think it would turn into dinner,” Philip said. “Which then turned into a nightcap,” Gabi whispered. After Gabi and Philip had sex, Philip suggested that they get together again. “I’d like that,” Gabi said.

“It was a few mere years ago that you and I almost slept together. Do you remember?” Gabi asked. Philip nodded yes, and he noted that it would have been a mistake since Gabi had been in love with Jake. Gabi confessed that she had felt a real connection with Philip this time. Gabi kissed Philip goodbye, and as she opened the door to leave, she saw Belle. Gabi smiled and walked out.

After Philip dressed, Belle told him she had a warning for him. Belle told Philip that she knew someone was getting close to uncovering Philip’s secret. Belle urged Philip to come clean publicly. Philip demanded to know who was investigating him so that he could shut them up. Belle refused. Philip threw a brief tantrum, then apologized. Philip asked Belle if she was okay.

Belle admitted that she missed and loved EJ, even though he did not deserve her. “You’re not thinking about getting back together?” Philip asked. Belle said no. Belle explained that now that the trial was over, she did not have a distraction from her grief over her break-up or John’s death. “You are a strong and resilient person with so much to offer,” Philip said. Philip promised that Belle would feel better in time, and that he would be there to support her. Philip suggested they play hooky from work together.

Paulina met up with Jada at the police station. When Paulina complained about the possibility that EJ had doctored the video of Chanel, Jada agreed that she had shared the same concern. “Which is why I obtained warrants to check all the personal bank accounts of every individual who was given that footage,” Jada said. Jada confirmed that there was nothing unusual, and her forensics team argued their report had been an honest mistake based on the limits of technical knowledge in their department. Paulina vowed to better fund the department’s efforts to keep up with AI technology.

Paulina asked about Kristen’s sentencing, but Jada said there was no news yet. With a shake of her head, Jada said she was surprised that Kristen had almost let her nephew take the fall for her. “That’s just how the DiMeras are,” Paulina muttered.

When Paulina rejoined Abe in the square, Abe took a call from Theo. After the call, Abe and Paulina agreed that they wished Theo was not so far away. Paulina suggested that she and Abe plan visits to all their children. “If I learned one thing from John’s passing, time is precious,” Abe said. “And we should make it a point to spend as much time with our family as we possibly can,” Paulina agreed.

Paulina changed the subject to Abe’s book purchases, and he presented her with a copy of “One Stormy Night.” With a chuckle, Abe noted he would have to borrow the book. Paulina suggested they read the book together.

Gabi crept into her house as she returned home from her night out with Philip. “Mom! Where have you been?” Ari demanded as she walked into the kitchen. Ari told Gabi she had been worried when Gabi had not returned home nor answered any calls or texts. “I’m so sorry, sweetie. My phone died,” Gabi said. Ari demanded to know why Gabi had stayed out all night, then gasped.

“Oh my god. Did you have sex last night?” Ari asked. Gabi argued that she had every right to have a love life. “I didn’t realize that you were seeing someone,” Ari said. Gabi admitted it had been a spur of the moment thing. After some bickering, Gabi noted that Ari’s dads would have their hands full when she returned to Arizona. Ari told Gabi about her plans to go to Salem U. Elated, Gabi hugged Ari. Ari called her dads and told them about her decision.

While on a walk, Xander pushed Victoria’ stroller past the Brady Pub. “Everyone thinks that I should be nicer to your Uncle Philip. But I don’t think that cheating, lying, swindling should be rewarded with kindness,” Xander said. Marlena texted Xander to confirm his appointment for anger management therapy. Xander looked at Victoria, and he whispered, “If I don’t want to lose custody, I guess I don’t have a choice.”

Inside the pub, Ari was reading “One Stormy Night” at a table when Jada said hello. Ari noted that she had attempted to look up the author, but she had not found any information. “To my understanding, that’s her first novel,” Jada said.

Gabi was working on her computer in her kitchen when Steve stopped by the house. “Did you find dirt on Xander and Philip?” Gabi asked. Steve returned Gabi’s retainer. “I’ve decided I can’t work on this case any longer,” Steve said. When Gabi asked why, Steve said he could not explain. “My advice to you is leave well enough alone,” Steve said. After Steve walked out, Gabi muttered, “Like hell I will.”

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