Java update not working?
You can have multiple versions of JRE installed on your system. To see them all, use the following command:

/usr/libexec/java_home -verbose

The output is something like this:

1.8.0_05, x86_64:   "Java SE 8" /Library/Java/JavaVirtualMachines/jdk1.8.0_05.jdk/Contents/Home
1.7.0_51, x86_64:   "Java SE 7" /Library/Java/JavaVirtualMachines/jdk1.7.0_51.jdk/Contents/Home

/Library/Java/JavaVirtualMachines/jdk1.8.0_05.jdk/Contents/Home


It lists all the JRE versions you've installed on your system, and the last line indicates which one is your current system default. To change that or manage it even better for any future needs take a look at this post on SuperUser. I believe this will solve your problem.