In transport experiments, the quantum nature of matter becomes directly evident when changes in conductance occur only in discrete steps(1), with a size determined solely by Planck's constant h. Observations of quantized steps in electrical conductance(2,3) have provided important insights into the physics of mesoscopic systems(4) and have allowed the development of quantum electronic devices(5). Even though quantized conductance should not rely on the presence of electric charges, it has never been observed for neutral, massive particles(6). In its most fundamental form, it requires a quantum-degenerate Fermi gas, a ballistic and adiabatic transport channel, and a constriction with dimensions comparable to the Fermi wavelength. Here we report the observation of quantized conductance in the transport of neutral atoms driven by a chemical potential bias. The atoms are in an ultra-ballistic regime, where their mean free path exceeds not only the size of the transport channel, but also the size of the entire system, including the atom reservoirs. We use high-resolution lithography to shape light potentials that realize either a quantum point contact or a quantum wire for atoms. These constrictions are imprinted on a quasi-two-dimensional ballistic channel connecting the reservoirs(7). By varying either a gate potential or the transverse confinement of the constrictions, we observe distinct plateaux in the atom conductance. The conductance in the first plateau is found to be equal to the universal conductance quantum, 1/h. We use Landauer's formula to model our results and find good agreement for low gate potentials, with all parameters determined a priori. Our experiment lets us investigate quantum conductors with wide control not only over the channel geometry, but also over the reservoir properties, such as interaction strength, size and thermalization rate.