Note: I'm assuming $x\in R$ in this whole post.
Indeed $x/x$ is only defined when $x\ne 0$. And wherever it is defined, its value is $1$.
However when people (especially in fields other than mathematics where mathematics is used) talk about such expressions, often what they really mean is: "The continuous (or, more generally, "well-behaved") function determined by the values of the given expression where that expression is defined". And there exists indeed exactly one continuous function $f:\mathbb R\to\mathbb R$ so that $f(x)=x/x$ for $x\ne 0$, and that is the constant function $f(x)=1$ for all $x\in\mathbb R$.
As a concrete example, consider the function $\sin(x)/x$ which appears in physics in the amplitude of a wave when describing diffraction on a slit. This expression is clearly not defined at $x=0$. However is is of course silly to assume that the amplitude of a wave is not defined at some point. What physicists actually mean is the continuous function
$$f(x)=\begin{cases}
\frac{\sin x }{x} & x\ne 0\\
1 & x=0
\end{cases}$$
But usually that function isn't written that way; the interpretation is implicitly assumed.