So if you attempt to install the update, what happens? Does it appear to do it? Does it reboot your Mac? Mine would always tell me that the update failed - either without rebooting, or if it did reboot, the failure message came up afterwards. Did you download and try the manual update found here?
Thunderbolt Firmware Update v1.2
If that doesn't work, do you get an error?
Finally, did you do both an SMC and PRAM reset? I didn't mention it, but keep your laptop open the whole time and work from its screen rather than in clamshell mode where the Thunderbolt is your only display. I'll summarize the whole process that was successful for me here:
1. Shutdown laptop, disconnect everything except power. If any other Thunderbolt devices are attached to the display, disconnect them.
2. Open laptop, and do the SMC reset.
3. Do the PRAM reset.
4. Boot laptop (still with nothing attached except power.)
5. Connect Thunderbolt display but leave laptop open (as primary screen).
6. Install the update.
7. If successful, it should reboot your laptop and you'll get a progress indicator (though it doesn't actually say anything about the firmware update.)
8. It reboots again normally.
9. Check firmware, should be 26.2 for the display.
10. Reconnect any other Thunderbolt devices to the display, if you had any.
If that doesn't work, then the problem must be different than mine. Good luck.