A compressor for a turbine engine includes a shroud having a grooved section including a plurality of groove segments extending radially into a shroud surface. A rotor assembly rotatably supported in the shroud includes a rotor hub and a plurality of rotor blades. Each rotor blade extends radially from the rotor hub and terminates at a blade tip, which is spaced from the shroud surface by a tip gap and defines a non-constant clearance region between a leading edge position and a medial chord position along the blade chord at the minimum tip clearance. The rotor blades generate an aft axial fluid flow through the shroud and the grooved section is formed in the shroud surface upstream of the medial chord position within the non-constant clearance region for resisting a reverse axial fluid flow through the tip gap when the compressor section is operated at near stall conditions.