This experimental study characterizes the interactions of axial casing grooves (ACGs) with the flow in the tip region of an axial turbomachine. The tests involve grooves with the same inlet overlapping with the rotor blade leading edge, but with different exit directions located upstream. Among them, U grooves, whose circumferential outflow opposes the blade motion, achieve a 60% reduction in stall flowrate, but degrade the efficiency around the best efficiency point (BEP) by 2%. The S grooves, whose outlets are parallel to the blade rotation, improve the stall flowrate by only 36%, but do not degrade the BEP performance. To elucidate the mechanisms involved, stereo-PIV measurements covering the tip region and interior of grooves are performed in a refractive index-matched facility. At low flowrates, the inflow into both grooves, which peaks when they are aligned with the blade pressure side (PS), rolls up into a large vortex that lingers within the groove. By design, the outflow from S grooves is circumferentially positive. For the U grooves, fast circumferentially negative outflow peaks at the base of each groove, causing substantial periodic variations in the flow angle near the blade leading edge. At BEP, interactions with both grooves become milder, and most of the tip leakage vortex (TLV) remains in the passage. Interactions with the S grooves are limited; hence, they do not degrade the efficiency. In contrast, the inflow into and outflow from the U grooves reverses direction, causing entrainment of secondary flows, which likely contribute to the reduced BEP efficiency.