Well, I am confused. In your first post you said you are using a 4026, now its a 4017 (the famous Led-chaser IC, which, to my knowledge, only comes in 16 pin version).
If you are looking for a circuit that displays the next number in sequence (0-9) each time the 555 pulses, you want a binary counter chip. For that, I use the 74LS90 with great success. Of course, then you must use a 74LS47 or 48 to drive your seven-segment display.
If you want to do this in CMOS, you can use the 4029, which is a counter-driver chip.
Edit: Sorry, wrong number. It IS the 4026 that drives seven-segment. Also, I see you have edited your post while I was creating mine. Make sure you are wired correctly. Your circuit should work.
I have attached a schematic of a basic counter circuit if you want to see how I do it.